S&P 500 Weekly Price Forecast – S&P 500 Continues to Bang up Against The 4800 Level

US Stock Market Forecast Video for 15-01-2024

S&P 500 Weekly Technical Analysis

We have had a very strong week for the S&P 500 and stocks in general as traders continue to focus on the idea that the Federal Reserve is going to perhaps liquefy the markets, cutting rates rapidly during the course of 2024. That being said, the 4800 level still offers a bit of a barrier and we have not seen it clear that, at least not decisively at any point.

If we do, that opens up the next leg higher, but we could also find ourselves in a situation where we need to work the market sideways a bit just to get rid of some of the excess froth. I think either would still look rather bullish, and even if we pulled back from here, there has to be a significant amount of support underneath by people willing to chase performance.

The 4500 level is a major support level, so even if we fell all the way down to that level, I think I would still be looking to buy signs of support. That being said, this is a one-way trade. That’s especially true as long as the Federal Reserve is expected to cut rates, because let’s face it, the only thing that Wall Street really cares about at this point is whether or not there is cheap money to be had, but macroeconomics, not so much. It doesn’t really matter, at least until it does. Right now, it’s about monetary flow and it does favor higher asset prices, including the stock market in general.

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